UNIT – I
LESSON – 1.1
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ACCOUNTING – AN INTRODUCTION
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1.1.1 INTRODUCTION
Accounting is aptly called the language of business. This
designation is applied to accounting because it is the method of
communicating business information. The basic function of any
language is to serve as a means of communication. Accounting duly
serves this function. The task of learning accounting is essentially
the same as the task of learning a new language. But the
acceleration of change in business organization has contributed to
increasing the complexities in this language. Like other languages,
it is undergoing continuous change in an attempt to discover better
means of communications. To enable the accounting language to
convey the same meaning to all people as far as practicable it
should be made standard. To make it a standard language certain
accounting principles, concepts and standards have been developed
over a period of time. This lesson dwells upon the different
dimensions of accounting, accounting concepts, accounting
principles and the accounting standards.
1.1.2 OBJECTIVES
After reading this lesson, the reader should be able to:
• Know the evolution of accounting
• Understand the definition of accounting
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• Comprehend the scope and function of accounting
• Ascertain the users of accounting information
• Know the specialised accounting fields
• Understand the accounting concepts and conventions
• Realise the need for accounting standards
1.1.3 CONTENTS
1.1.3.1
Evolution of Accounting
1.1.3.2
Book Keeping and Accounting
1.1.3.3
Definition of Accounting
1.1.3.4
Scope and Functions of Accounting
1.1.3.5
Groups Interested in Accounting Information
1.1.3.6
The Profession of Accounting
1.1.3.7
Specialised Accounting Fields
1.1.3.8
Nature and Meaning of Accounting Principles
1.1.3.9
Accounting